On the agenda: Operating deficits, capital spending, and another Oliver tower
By
Mack Male
A public hearing will take place on Sept. 11, and city council will meet on Sept. 12 and 13. Council services committee will meet on Sept. 15.
Here are some of the key items on the agenda:
- Administration is reporting an operating deficit of $2.7 million as of June 30 and projects a year-end deficit of $73.8 million. That's due to $43 million in salary settlements, lower than expected transit revenue, lower ATCO Gas franchise fees, and lower than expected on-street construction and maintenance revenue, among other things. The city spent $3.1 million up to June 2023 to support Albertans impacted by wildfires, for which it will seek reimbursement from the provincial Disaster Recovery Program.
- The Edmonton Police Service is reporting a deficit of $4.2 million as of May 31, mainly due to higher overtime costs "to maintain minimum staffing." The service is projecting a year-end deficit of about $2.8 million. As of June 19, total attrition at EPS was 47 sworn members.
- Administration projects the Financial Stabilization Reserve will finish 2023 with a balance of $135.7 million, which is above the minimum required balance of $123.5 million but is significantly below the target balance of $205.1 million. Funding new initiatives using the FSR "should be limited to those circumstances with emergent financial needs" for the remainder of the year, administration says.
- Administration proposes creating a Community Safety and Well-Being Reserve to facilitate the allocation of $21.9 million in CSWB tax-levy funds each year.
- Year-to-date capital expenditures total $446.5 million, with a total of $1.8 billion in spending projected by the end of 2023. That's higher than in previous years due to major projects including the Valley Line West LRT and the Yellowhead Trail Freeway Conversion. As of June 30, administration says 99.6% of capital projects are within an acceptable tolerance for budget and 82% are within an acceptable tolerance for schedule. The city expects to finish 2023 with $4.3 billion of outstanding debt, having used 86.5% of its tax-supported debt servicing limit and 67.6% of its total debt servicing limit.
- Autograph proposes building a high-rise, mixed-use tower of up to about 23 storeys at 102 Avenue and 123 Street in Oliver, just across the street from The Mercury Block, which it also developed. Administration supports the proposal, saying the site is "well positioned for an increase in development intensity" and "will recognize and enhance the pedestrian-oriented nature of the area."